A financing instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer. instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer. exporter that substitutes the bank's creditworthiness for that of the importer.

(See Credit Application.)

Also known as the opening bank. It issues its commitment to the seller in the form of a letter of credit. opening bank. It issues its commitment to the seller in the form of a letter of credit. opening bank. It issues its commitment to the seller in the form of a letter of credit.

The last date upon which the presentation of documents may occur under a letter of credit under UCP rules.

The beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf. beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf. beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf.

Financial and commercial documents such as drafts, commercial invoices, packing lists, bills of lading, insurance certificates, etc. In Letter of Credit transactions, banks deal with documents alone and are not involved in underlying sales agreements. commercial documents such as drafts, commercial invoices, packing lists, bills of lading, insurance certificates, etc. In Letter of Credit transactions, banks deal with documents alone and are not involved in underlying sales agreements. commercial documents such as drafts, commercial invoices, packing lists, bills of lading, insurance certificates, etc. In Letter of Credit transactions, banks deal with documents alone and are not involved in underlying sales agreements.

The seller can instruct the buyer to make provisions for a letter of credit to be confirmed. A confirming bank adds its own irrevocable undertaking to that of the issuing bank.

Situation that occurs when documents presented by the seller, in an effort to be paid under a letter of credit, do not conform to the terms of the letter of credit.

The person or company that sells or arranges to transport goods out of a country.

The account party's bank that issues or opens the credit.

The bank that receives a letter of credit issued by the applicant's bank (the issuing bank) and forwards it to the beneficiary without assuming any responsibility or liability other than to verify the authenticity of the letter of credit.

The person or company due payment in the letter of credit. Usually the exporter (seller).

Documents, such as commercial invoices, certificates of origin, packing lists, bills of lading, etc., usually covering a merchandise transaction.

The party (generally buyer/importer) for whose account a letter of credit is established.

The privilege of buying goods, services or borrowing money in return for a promise of future payment.

The person or company that sells or arranges to transport goods out of a country.

A right to the payment of money such as agency notes, commercial paper, T-Bills, certificates of deposit (CD's), banker's acceptances and repurchase agreements.

The account party's bank that issues or opens the credit.

The bank that receives a letter of credit issued by the applicant's bank (the issuing bank) and forwards it to the beneficiary without assuming any responsibility or liability other than to verify the authenticity of the letter of credit.

The person or company due payment in the letter of credit. Usually the exporter (seller).

Documents, such as commercial invoices, certificates of origin, packing lists, bills of lading, etc., usually covering a merchandise transaction.

A medium of exchange; coined or stamped currency.

The unsecured promissory notes of large, financially sound corporations.